Driving a hard bargain in better times

Just because boom times may be ahead doesn’t mean you’ve lost bargaining power. We asked execs how they get the best rate for equipment and service agreements, and they shared their top tips.

Drag your feet: Unless your need is urgent, take your time when considering bids, advises John Hann, president of e-numera, an e-business solutions provider. Eventually the end of the month will come and prices will drop as salespeople try to make quota.

Strike before the economy’s hot: “We did a big project over the last two years when things were pretty bad,” says Joshua Fost, CTO at commercial real estate firm Colliers International USA. “We were able to negotiate more effectively because all of our vendors were very hungry. When the economy gets hot, do a lot of planning. When things cool off, you can engage in projects and get better prices.”

Go with independents: “Independent contractors care much more about their reputation — and referrals — than those from agencies,” e-numera’s Hann says. “They’ll put in that extra effort, despite [a low] rate.”

Consider alternate suppliers: To refresh his company’s PC infrastructure, Mindbridge COO Scott Testa turned to private auctions and eBay. “We got some 3Com routers for 5 cents or 10 cents on the dollar,” he boasts.

“All of us have learned to live with less these past few years — even your vendors,” Hann notes. “Even if the economy seems to be recovering, they’re still hungry for your dollars.”